Turkey’s privatization of hydro assets continues with EBRD funding
A European Bank for Reconstruction and Development loan to Entek Elektrik Uretimi A.S. will see the company take control of a pair of previously state-owned hydropower facilities.
Entek’s acquisition will include the 54-MW Kilavuzlu and 124-MW Menzelet — both located in the southeastern Kahramanmaras province — and are part of the Turkish government’s efforts to increase private participation in its energy generating sector.
The deal includes a two-part EBRD loan totaling US$55 million in value, with other lenders including Garantibank, Isbank, Akbank, Yapikredi, Unicredit and IBC Turkey.
“The privatization of Menzelet and Kilavuzlu is the largest acquisition of hydropower plants by a domestic investor in Turkey,” Entek CEO Bilal Tugrul Kaya said. “In the forthcoming period, we are planning to continue our investments by considering a balanced and diversified generation portfolio.”
Entek, a subsidiary of Koc Holding, already operates six hydroelectric plants in Turkey.
EBRD has invested more than $12 billion into Turkey since 2009, including funding for utility Gama Energi in 2016 that allowed for the privatization of the 78-MW Karacaoren hydro project.